Moody’s cuts Waterford CFR, notes to Ca

Moody's Investors Service said it lowered Waterford Gaming, LLC's probability of default rating to D-PD from Caa2-PD, corporate family rating to Ca from Caa3 and the rating on its 8 5/8% senior unsecured notes to Ca from Caa3.

The outlook is negative.

This action follows Waterford's inability to repay the roughly $41 million of outstanding notes upon maturity on Sept.15, 2014.

The company entered into a forbearance agreement with a majority of its lenders pursuant to which the note holders agreed to forbear from exercising their rights and remedies under the indenture governing the notes. Waterford will continue to indirectly receive its share of the relinquishment payment from Mohegan Tribal Gaming Authority (B3 negative) until Jan. 25, 2015.

The negative outlook recognizes that the remaining relinquishment payments will not be sufficient to repay the outstanding notes in full.

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